1. Field of the Invention
The present invention relates to a financial risk management technology for totally managing the risk in financial transactions using computers, and more specifically to a financial risk management apparatus capable of freely designing desired financial goods by arbitrarily setting and combining parameters relating to actual or imaginary financial transactions, and quickly performing a simulation of imaginary financial transactions or an operation of actual financial goods (risk management), and to a financial transactions modeling apparatus applicable to the financial risk management apparatus.
2. Description of the Related Art
With the diversification of the financial market, the financial transactions also have become diversified and complicated, and the risk management of the financial transactions is required by persons engaged in financial facilities and their customers.
Especially required is the general risk management technology for compound transactions including a plurality of financial transaction entities such as cancelable swaps, swaps with a cap, etc.
To successfully manage the risk in each transaction entity which is the base of the above described compound transactions, there have conventionally been the necessity of programming a risk management module depending on the type of each transaction entity. With an increasing amount of development costs, the conventional technology has the problem that new financial transactions cannot be easily or quickly managed.
There are some typical conventional risk management systems provided with every function implementation. However, since these systems need to implement all functions of financial transactions such as foreign exchange spots, cash equities, discount bonds, interest rate swaps, coupon swaps, currency swaps, options, etc., a large amount of development cost is required, thereby exceedingly raising the sales cost involved.
The transactions of a cash flow type based on ‘exchange’ are in the majority of the actual financial transactions. However, the conventional systems do not utilize such common features and therefore are not efficient systems as a whole. As a result, they are subject to a raise in the cost as described above.
On the other hand, there has been the conventional technology referred to as tying with strings as the general risk management technology for compound transactions.
In this conventional technology, a common linked code is assigned to a plurality of transaction entities, and the linked code is used in a database to collectively manage the risk in a plurality of transaction entities as compound transactions.
In the above described conventional technology, to perform all operations required to manage the risk in compound transactions, each of the transaction entities forming part of the compound transactions is retrieved from a database using a linked code, a risk management operation is performed on each of the retrieved transaction entities, each operation result is stored in the database, and retrieving and aggregating procedures are necessary in the database based on the association between the transaction entities realized by any method.
Therefore, there has been the problem with the conventional technology that a large scale programming is required to develop a general risk management system for compound transactions, thereby incurring a raise in a development cost and an undesired large scale system.
In addition, a large volume of arithmetic operations are performed by a developed general risk management system, and the performance of the general risk management apparatus can hardly be improved.
Furthermore, there has been the problem that, with an increasing number of types and an increasing number of transaction entities forming financial transactions, a larger storage capacity is required to store the data.
To solve the above described problem, it has been necessary for the conventional technology to provide a large-capacity and high-performance computer in financial facilities, etc. which process a large volume of financial transactions, and the equipment funds and working cost for the general risk management has soared high.
The present invention has been developed to solve the above described problems, and aims at reducing the development and working cost for the general risk management system for financial transactions to improve the system performance.